The perception of the term “human resources management”, which refers to the corporate practice concerning people in organisations, has evolved from a merely legal fulfilment and an administrative effort to the investment in people. We encourage companies to look beyond the notion of employment costs or considering people as goods. People should be employed to actively contribute to the results of the business, not simply to follow the job description, focusing on results and not on the activity.
In order to obtain effective results from people, the expense mentality must evolve towards an investment approach. That’s why we prefer the term “human capital”, from the profit and loss account to the balance sheet! It’s up to the experts then to provide our support service to the best current practices to build teams and carry out those assessments according to a structured methodology. The assessment will uncover areas of risk and opportunity in terms of the best practices to provide a total or partial human capital support service, whether as retention or project, according to the needs that come up.
Investment in employees
If people should be considered as commercial assets in terms of the knowledge, experience and mentality that they apply to achieve commercial goals, we can then say that we can apply commercial terminology even more when considering factors related to people.
The idea of offering investment for employees aligns the corporate strategy to the human capital strategy and, among other things, deals with the following:
– Getting the correct base: ensuring that payment levels are defensible in terms of equality principles; for example, that work qualifications, policies and procedures which regulate payment practices are in order.
– Creating a positive environment for employees, and then recognising and rewarding exceptional contributions. Several factors come into play here: for example, training and development, professional career plan and, the most important one, a leadership style that allows people to deliver results while reaching their full potential. We refer to the latter as employee commitment, and we describe it as people who are highly engaged with measures inspired by themselves.